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Partnership firm is different from Partners
Both have to compute tax and file their ITR (Income tax Returns) separately
For example:-
There is a Partnership firm SK Traders
which has 2 partners Sanjay and Kishan
There will be 3 ITR's filed,
1.SK Traders (Parnership firm Assessee)
2 Sanjay (Individual Assessee)
3 Kishan (Individual Assessee)
INCOME TAX SLAB RATE FOR PARTNERSHIP FIRM
| Particulars | Rate | On |
| Income Tax Rate | 30% | On Income |
| Surcharge | ||
| If Income upto 1 Cr | 0% | On Tax |
| If Income > 1 Cr | 12% | On Tax |
| Education Cess | 4% | On (Tax + Surcharge) |
DOWNLOAD AND TRY
Q1 Suppose a Partnership firm earns a Profit of 20 lacs
What is income Tax Payable by it
View Answer| Particulars | Case 1 |
| Profit and Gains of Business and Profession | 2000000 |
| TAXABLE INCOME | 2000000 |
| TAX 30% | 600000 |
| Surcharge @ 12% | 0 |
| Tax + Surcharge | 600000 |
| Cess @ 4% | 24000 |
| Total Tax including Cess | 624000 |
Q 2
What is the tax payable in following cases in case of Partnership Business ?
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 | Case 5 |
| TAXABLE INCOME | 20000 | 50000 | 400000 | 6000000 | 18000000 |
| TAX 30% | |||||
| Surcharge @ 12% | |||||
| Tax + Surcharge | |||||
| Cess @ 4% | |||||
| Total Tax including Cess |
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 | Case 5 |
| TAXABLE INCOME | 20000 | 50000 | 400000 | 6000000 | 18000000 |
| TAX 30% | 6000 | 15000 | 120000 | 1800000 | 5400000 |
| Surcharge @ 12% | 0 | 0 | 0 | 648000 | |
| Tax + Surcharge | 6000 | 15000 | 120000 | 1800000 | 6048000 |
| Cess @ 4% | 240 | 600 | 4800 | 72000 | 241920 |
| Total Tax including Cess | 6240 | 15600 | 124800 | 1872000 | 6289920 |
Q3
Suppose Business Income is 100000, Calculate Tax in case of Proprietorship and Partnership
View Answer| Particulars | Proprietorship | Partnership |
| Profit and Gains of Business and Profession | 100000 | 100000 |
| TAXABLE INCOME | 0 | 100000 |
| TAX 30% | 0 | 30000 |
| Surcharge @ 12% | 0 | 0 |
| Tax + Surcharge | 0 | 30000 |
| Cess @ 4% | 0 | 1200 |
| Total Tax including Cess | 0 | 31200 |
Q4
A person wants to start a new business and expects to earn profit of 330000.
He has 2 Options
Open a Proprietorship
Open a Partnership with his wife
Which option is better?
View Answer| Particulars | Proprietorship | Partnership |
| Profit and Gains of Business and Profession | 330000 | 330000 |
| TAXABLE INCOME | 330000 | 330000 |
| TAX | 4000 | 99000 |
| Rebate | 2500 | 0 |
| Surcharge @ 12% | 0 | 0 |
| Tax + Surcharge | 1500 | 99000 |
| Cess @ 4% | 60 | 3960 |
| Total Tax including Cess | 1560 | 102960 |
